Carnavale Resources Ltd (ASX:CAV, FRA:YBB) earlier this week confirmed gold recoveries of up to 99% from detailed metallurgical testwork at the Kookynie Gold Project in Western Australia, strengthening the technical basis for the company’s proposed low-capital development strategy.
The Definitive Feasibility Study-level program returned recoveries of 98% from oxide and transitional material and 99% from fresh rock at a grind size of 106 microns. Gravity gold recoveries ranged from about 71% in oxide material to more than 81% in fresh rock.
Managing director Humphrey Hale said the results confirmed earlier work that had indicated recoveries of as much as 99%, while providing a more comprehensive assessment across the project’s principal mineralogical domains.
Hale described the results as “tremendous” and said: “You don’t get better ore than this.”
The testwork was completed using saline processing water representative of conditions in the Eastern Goldfields. Hale said the water had not adversely affected recovery, while cyanide consumption remained low at approximately 0.3 to 0.4 kilograms per tonne.
He said the ore had behaved similarly to material from other Eastern Goldfields deposits and had shown no evidence of preg-robbing or refractory characteristics. The material had also contained no mercury, arsenic or other deleterious elements likely to create complications for third-party processing facilities.
Hale characterised the ore as “Goldilocks stuff”, saying its metallurgical properties were well suited to the company’s proposed operating model.
Carnavale plans to mine ore at Kookynie and process it through a nearby third-party plant rather than construct a standalone facility. Hale said the completed metallurgical program would provide the detailed technical information required to negotiate either a toll-treatment agreement or an ore-purchase arrangement.
The company tested three master composites covering oxide, transitional and fresh material before conducting variability work across the deposit. Hale said the program had given Carnavale confidence that the positive metallurgical response was representative across the ore body.
The next potential catalyst is completion of the project’s feasibility study. Hale said the technical work had been completed and the remaining reports were being finalised ahead of financial modelling and publication of the study in the coming weeks.
Further catalysts could include progress on third-party processing negotiations, permitting, project financing and a formal development decision. Hale said Carnavale had reported approximately $3 million in cash in its latest quarterly report, leaving the company focused on funding project development rather than near-term operating requirements.
Interview highlights
- Carnavale Resources Ltd (ASX:CAV) confirmed gold recoveries of 98% from oxide and transitional material and 99% from fresh rock at a 106-micron grind size.
- Gravity gold recoveries ranged from about 71% in oxide material to more than 81% in fresh rock.
- The testwork used saline Goldfields processing water without any material impact on recovery.
- Cyanide consumption remained low across all three mineralogical domains.
- The ore showed no preg-robbing or refractory characteristics.
- No mercury, arsenic or other deleterious elements were identified that could complicate third-party processing.
- The results support Carnavale’s proposed low-capital development model based on third-party processing.
- The data will be used in discussions over toll-treatment or ore-purchase arrangements.
- Technical work for the feasibility study has been completed, with reports and financial modelling being finalised.
- The next potential milestones include publication of the feasibility study, permitting, project funding and progression towards mining.
Proactive: Carnavale Resources Ltd (ASX:CAV) has confirmed gold recoveries of up to 99% from detailed metallurgical testwork at the Kookynie Gold Project. Humphrey, how significant are these results?
Humphrey Hale: They are tremendous results. The Definitive Feasibility Study work that we started at the beginning of the year is now coming towards an end, and this is another important part of that process.
Earlier testwork suggested recoveries of 99%, and this program has now confirmed that through detailed analysis. We completed master composite testwork on oxide, transitional and fresh rock material, achieving gold recoveries of between 98% and 99% at a grind size of 106 microns across all three material types.
Gravity gold recoveries were also between about 70% and 80%. You do not get better ore than this.
Proactive: Do the results support the proposed low-capital toll-treatment development strategy?
Humphrey Hale: Yes, absolutely. The plan has always been to mine the project and process the ore as close as possible using a third-party processing plant.
This information gives us the level of detail we need to negotiate either an ore-purchase arrangement or a toll-treatment agreement. That takes us to the next stage of the project.
Proactive: What does the testwork tell you about Kookynie ore and how it could perform in a conventional Eastern Goldfields processing plant?
Humphrey Hale: Because we need to toll-treat the ore somewhere in the Goldfields, we required detailed information about how it would respond under local processing conditions.
We used saline Goldfields processing water during the testwork, and it did not have any adverse effect on gold recovery. Cyanide consumption was also low, at approximately 0.3 to 0.4 kilograms per tonne.
We completed a full suite of comminution testwork, and the ore behaved very similarly to most Eastern Goldfields ore bodies. It did not display any preg-robbing or refractory characteristics.
The material also contained no mercury, arsenic or other deleterious elements that could create problems for processing plants. As an ore type, this is about as good as you can get. It is “Goldilocks stuff” and is superb from our perspective.
Having this information available for negotiations over toll-treatment or ore-purchase arrangements is very valuable.
We tested three master composite samples using significant volumes of material. That was followed by variability sampling to ensure we had a representative spread across the ore body and could determine whether there were any fluctuations in grade, recovery or ore characteristics.
We are therefore very confident that the positive results are representative across the deposit.
Proactive: How is the feasibility study progressing, and what work remains?
Humphrey Hale: The main task remaining is to bring all the reports together. The technical work has now been completed, and the individual reports are being finalised.
Once that is done, we can complete the financial model and bring the full feasibility study together. We expect to report the study in the next few weeks.
Beyond that, the next steps will include permitting and assessing the capital required to develop the project and move directly into a mining operation.
Carnavale Resources had approximately $3 million in the bank at the time of its most recent quarterly report, so the company is not under pressure for operating capital. The focus is on determining how the project will be developed.
Proactive: It is a strong result, with plenty to look forward to over the coming weeks and months. Congratulations, and enjoy your time at Diggers.
Humphrey Hale: Thank you very much. We are at booth FC10, so anyone attending is welcome to come by for a chat.